New Delhi: The Supreme Court on Tuesday dismissed Uttar Pradesh government's order of cancelling the land allotment to hoteliers in Noida.

The Apex Court’s order came as a jolt for Mayawati government which cancelled the lease granted to hoteliers by the Mulayam Singh government in 2006.

It should be learnt that with an aim to promote tourism, the then Chief Minister of UP Mulayam Singh had allotted land to 14 companies in Noida, but Mayawati termed it as illegal and cancelled the allotment during her regime.

However, the court has asked the hoteliers to pay additional amount of Rs 70, 000 per square metre for the land.

A bench headed by Justice R V Ravindran and Justice B Sudarshan Reddy also reduced four years of lease period of 90 years.
The time consumed during the case will not be added in the lease.

The Supreme Court said the companies will use 40 percent floor ratio area during the construction and directed the UP government to return the land to the hoteliers.

Mayawati had quashed the leases saying that the land was allotted on cheap rates and tenders were not opened while granting the land.

Fourteen companies including ITC Limited, Indian Hotels Limited Company had challenged Mayawati’s order to cancel the allotment in the Allahabad High Court. But the court said the companies could submit a memorandum to the concerned secretary.

The companies then challenged this order in Supreme Court.